Moody's downgrades a dozen UK banks

Moody's Investors Service has downgraded the debt ratings of a dozen British banks because of doubts over the strength of the government's support, according to AP. Moody's said Friday that the downgrades include a two-notch downgrade for government-controlled Royal Bank of Scotland, and a one-notch cut for Lloyds TSB Bank, a unit of part-nationalized Lloyds Banking Group. Spanish bank Santander had its British business downgraded by one notch, while Nationwide Building Society suffered a two-notch reduction. Moody's said it believes that the British government will continue to provide some support to systemically important financial institutions, but is more likely to allow smaller institutions to fail.